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Fact
Usually there are several credible approaches and solutions The interviewer expects a thoughtful, structured response The interviewer expects you to be effective with the knowledge you have and make hypotheses based on sound common sense
The process of a case interview parallels that of a consulting engagement. First, you will be given a description of a case problem by the interviewer. This description may be as short as one sentence or as long as a page of detailed information. Once given the case description, you will need to understand the
Listen to Case
Clarify Problem
Decompose Problem
State Hypotheses
Test Hypothesis
Summarize Findings
Listen to Case
Clarify Problem
Decompose Problem
State Hypotheses
Test Hypothesis
Summarize Findings
To develop a good issue tree, you should ensure that the subcomponents are linked in a logical manner, that it prioritizes the issues, and that it reveals possible solutions. Also, each branch of the tree must not overlap with another (mutually exclusive), and the branches should thoroughly represent contributing elements (collectively exhaustive).
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Listen to Case
Clarify Problem
Decompose Problem
State Hypotheses
Test Hypothesis
Summarize Findings
Use sketches - Graphics can be a powerful tool Once you are confident you understand the problem, you should list out potential hypotheses that may resolve the core problem. You will then need to choose a framework (or analysis tool) to structure your hypotheses (see Sample Frameworks and Applications section), but do not feel constrained by these since many cases will not fit neatly into one of those frameworks. The framework is a key to structured thinking - it allows you to approach a problem in a holistic manner, while directing your analysis to each of the components within the framework.
Listen to Case
Clarify Problem
Decompose Problem
State Hypotheses
Test Hypothesis
Summarize Findings
Test Hypotheses
Goal: Apply framework to Test Hypotheses Activities: Describe analyses to be applied Break problem into its component parts in a structured manner Apply framework and discuss findings/implications to solution definition Probe for concurrence/additional information Present hypotheses for future testing/discussion Once a framework is selected, you must analyze each component of the framework in a logical manner. Discuss the analyses you would perform to determine if your initial hypotheses are true. You may have to ask additional questions of the interviewer to get the information needed to develop these analyses. Often times, you may be asked to perform an analysis with simple data supplied by the interviewer. If you find that your analyses are not confirming your initial hypotheses, develop new ones. If your analyses do not appear to be enlightening, the interviewer may direct you towards another path. Take advantage of these hints if they are offered.
Listen to Case
Clarify Problem
Decompose Problem
State Hypotheses
Test Hypothesis
Summarize Findings
Summarize Findings
Goals: Summarize Findings/Implications Activities: Succinctly remind interviewer of issues covered Present solutions Present alternative scenarios
Finally, summarize the framework and analyses you utilized in the case. Suggest recommendations for the client and potential next steps the client should take. The interviewer may tell you what happened with the real project situation on which the case was based. However, dont worry if your methodology or answer did not match the real project situation because you are being evaluated on your thought processes and not against some predetermined answer.
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Tests candidates ability to probe for additional details Tests candidates ability to distill Requires key issues structuring framework based Requires depth of on new facts analysis based on relevant facts
Provides little information, but asks a key question Tests a candidates analytic abilities Requires logical thought process and ease with numbers
The Great Unknown and Back of the Envelope cases are the most common types of cases. However, regardless of the type, be sure you have a solid understanding of the facts and what is being asked of you before you begin to crack the case.
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Potential Methodology:
Case Description: Listen carefully and determine the central business problem that is being asked.
Problem Understanding: Pause for a moment and consider the central problem. What additional facts do you need to fully clarify this problem? What are the crucial pieces of information that will allow you to develop a framework around this problem? Write those questions out and ask the interviewer. Be prepared to go several layers deeper into the issue as the interviewers answers may lead you to additional questions. Problem Decomposition: Identify and prioritize root causes of the problem by breaking the problem down into its component parts. An issue tree is a valuable tool to ensure that decomposition is exhaustive and that the sub-components are linked together in a logical manner.
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Describe to the interviewer what some of the potential issues/hypotheses could be. Then choose a framework that will structure your thinking and guide you through testing the issues/ hypotheses. Using the framework selected, explore the issues/hypotheses initially laid out. Describe the factors in each section of the framework that are relevant to the central problem. Also list out analyses to test the hypotheses in each section of the framework. By asking additional questions, you may still yield more information about the case from the interviewer.
Hypothesis Testing:
Case Summary:
Review your initial issues/hypotheses in light of your structured analyses and suggest possible recommendations for the client.
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Interview Example:
The client, a leading manufacturer of prefabricated kitchen furnishings, has been steadily losing market share over the last two years. The senior executive team would like you to help them understand why and what they can do to improve their market standing.
Potential Methodology:
Problem Understanding: Has the size of the market changed in the last two years? Has the competitive structure of the industry changed? Mergers and Acquisitions? New Entrants? Are there any new products or new technologies that are gaining market share? How are we currently positioned (low cost, high quality, etc.)? What is our competitive advantage? Structure Analysis: Determine the framework that is best suited for this case (see sample frameworks, page 22.) Based on information received from asking questions, explore the different possibilities of why the company may be losing market share (e.g., high cost structure relative to competition, substitute products threaten our market, etc.) Develop Recommendations: Discuss how the company could reverse the loss of market share (e.g., new market positioning, cost reduction programs, vertical integration strategy, etc.)
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Potential Methodology:
Problem Understanding: Pause for a moment and consider the central problem. Which of these facts are totally irrelevant? Eliminate them for now. Which facts are definitely related to the problem? Ask questions about facts that appear
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Ask about consumer test. What prices are consumers responding to? Are there any items spoiling on the shelf? What is the competitive structure of this market currently?
Structure Analysis:
Estimate the size of the market (a case within a case.) Determine the market share they will need to breakeven. Discuss the competitive structure of the market. Can the firm realistically achieve the break-even market share?
Develop Recommendations:
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Potential Methodology:
Assume there are two million people in Philadelphia Estimate the size of market by segmenting the population
Assume the population consists of 25% adult men, 25% adult women, and 50% children Assume children have no dry cleaning and only 25% of adults use dry cleaning Estimate the average number of units of clothing each man and woman brings weekly to the cleaners. For this case, assume that 3 shirts/blouses and 1 suit are brought to the cleaners each week Thus the total size of the market (per week) is one million units of clothing (1 million people x 25% x 4 units per person)
Estimate the average number of units a dry cleaner can handle per week
Assume that the average dry cleaner has two workers who typically handle 20 - 30 customers (or 80 - 120 units of clothing) per hour If the average dry cleaner is open eight hours a day, 5 days/week, they typically handle 3200 - 4800 units per week (80 - 120 units x 8 hours x 5 days)
Divide the total market size by the average units handled per dry cleaner to find the total number of dry cleaners
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Business Issue
Profitability
Potential Framework
Volume
Revenue
Profitability
Cost
Market Expansion
Competitive Analysis
3 Cs
SWOT
Opportunity Assessment
Product (e.g. new product launch) Business unit Overall market Asset valuation/maximization
Potential Entrants
Industry Competition
Buyers
Substitutes
Marketing Strategy
4 Ps
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Putting it Together
The interview process we have outlined will help you structure your thinking and the types of cases we have suggested will help you orient yourself to the different way in which information may be presented. In addition, the types of business issues and corresponding solution frameworks provided on the preceding page will help you determine how to analyze the situations given. Remember, there will always be multiple methodologies and frameworks that can be used successfully to approach a solution and you will work more effectively if you choose a framework you are comfortable with.
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Practice Cases
The Great Unknown Sample Cases
A major furniture retailer has experienced declining profits for four quarters, yet over that same time period, it has experienced a 25% growth in sales and has opened many new stores. Why are profits declining? A fast food company is thinking about putting a franchise in an airport. They hire you to see if they should do so. A bread division of a large food company is facing increasing competition in its market and wants to know if it should exit the market. A car company is interested in developing a new car. What marketing related issues should it consider before doing so?
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Practice Cases
The Back of the Envelope Sample Cases
How much money could Continental Airlines save by giving customers 1/2 a can instead of a whole can of Sprite?
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